It’s that time of year again, when doctors throughout the country are settling into new placements. Rotations typically have an impact on your pay.
With most people relying entirely on their salary to fund their lifestyle, many have taken the sensible step of insuring against the risk of losing their income due to illness or injury with income protection insurance.
Have you insured your income?
While some doctors assume their employers will take care of them should they fall ill, the reality is that your sick pay entitlement might not be as much as you think, and in any case, it won’t last forever. You can see what you might be entitled to below:
| Length of reckonable service | Sick pay entitlement |
| First year of service | 1 month full pay + 2 months half pay |
| Second year of service | 2 months full pay + 2 months half pay |
| Third year of service | 4 months full pay + 4 months half pay |
| Fourth year of service | 5 months full pay + 5 months half pay |
| Fifth year of service | 6 months full pay + 6 months half pay |
What happens once your sick pay runs out?
No doubt you have financial commitments. Just think about all those costs that rack up month after month – for example your mortgage, rent, food bills, gas and electricity, childcare costs and school fees. And how about holidays, birthdays and other special occasions? How would you continue to pay these if your regular income was to stop?
Even if you have income protection insurance, you should be asking yourself when was the last time you reviewed your cover?
Unfortunately, few doctors take the time to review their insurance cover following a change in circumstances, like their pay – meaning they are either over or under insured.
Why take the risk?
Reviewing your income protection insurance will help you avoid a nasty surprise should you ever need to draw on your policy, it could also help you save money, or find cover that’s more suited to your needs.
A specialist, helping hand
Chase de Vere Medical, as the UK’s largest specialist adviser for doctors, and the BMA’s partner for independent financial advice, can review your existing insurance cover to see if it’s still right for you and fill any gaps so that you’re financially protected right the way through to retirement.
Book you free appointment today and find out how we can help you.
Content correct at time of writing and is intended for general information only and should not be construed as advice.